Coalition promises to halve joblessness within decade

THE Government will today outline a central theme of its election campaign, with a promise to halve the unemployment rate to …

THE Government will today outline a central theme of its election campaign, with a promise to halve the unemployment rate to below 6 per cent over the next 10 years.

In a new strategy document on employment, it will also say that its programmes could halve the rate of long term unemployment - those out of work for more than one year - to less than 3.5 per cent of the labour force over the same time period.

In another major set piece on Thursday, the three Government leaders will publish their aspirational "21 goals for the 21st Century" plan. This document, which will underpin their campaign for reelection, covers social and economic areas but is extremely general in content.

In education, it aspires to the goal that every 12 year old will be able to read, write and have a basic command of science and computers, and "speak Irish with confidence". By 2010, every 12 year old should also be able to speak a continental language.

READ MORE

Today, the Government's new jobs programme, entitled "Growing our Employment Sharing our Growth", will be presented as a comprehensive plan to tackle unemployment and promote new jobs. It will also promise to continue the programme of personal tax reductions by reducing income tax rates and widening the standard rate band, to ensure a better return for those in work.

The document is also understood to include the goal of making the economy one of the top 10 most competitive in the world as measured by the respected World Economic Forum.

A new national competitiveness council, composed of Government nominees and representatives of the social partners, will have a key role in recommending measures to boost competitiveness, and report directly to the Taoiseach.

Central to the document will be a commitment to move to a new single 12.5 per cent rate of corporation tax. This will apply to manufacturing companies, currently on the 10 per cent rate, by 2011 and to all other companies by 2006. A new 25 per cent rate will apply to "passive income" such as rent from property. However there are likely to be measures to claw back some of the benefits from big financial institutions such as the banks.

In the area of welfare, the programme gives a commitment to introduce minimum rates recommended by the Commission on Social Welfare, and to take a much more active approach to training and job placement for the unemployed.

With preelection fever rising in political circles, Fine Gael has confirmed it is spending £750,000 on the campaign. Most of this is already spent; £250,000 goes on outdoor advertising; £200,000 on newspaper advertising; £100,000 on production costs and political broadcasts; £55,000 on general administration; touring and hotel costs will be £60,000; research, including private polls, £25,000; and printing, £60,000.

The party has an electoral budgetary shortfall of £250,000 and will seek to make this up through unsolicited donations, an appeal and by "mail shots" to businesses and individuals.

Meanwhile, it has emerged that, if in government, Fianna Fail will change the name of the Department of Social Welfare to that of the Department of Social, Community and Family Affairs. In a revamp of the Department, the party would also appoint a Minister of State with special responsibility for Family Affairs.

The Department of Arts, Culture and the Gaeltacht would become the Department of Arts, Culture, Heritage and the Islands.

Meanwhile, the Progressive Democrats finance spokesman, Mr Michael McDowell, said his party aimed to reduce the growth of current government spending on a gradual basis over five years.

Because of existing commitments under the present administration, spending in 1998 would be plus 2.5 per cent; it would run to plus 2 per cent in 1999; plus 2 per cent in 2000; plus 1.5 per cent in 2001; plus 1 per cent in 2002.